Project Management Framework

Study Notes

PMI, PMP, CAPM, PMBOK, PM Network and the PMI Registered Education Provider logo are registered marks of the
Project Management Institute, Inc.

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Points to Note
Please read Chapter 1, Chapter 2, and Chapter 3 from Project Management Institute, A Guide
to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition, Project
Management Institute, Inc., 2013 (pages 1 to 61).
The study notes explains topics that are important for PMP exam preparation and you can
expect several questions from these topics.
Pay close attention to all the terms used. It is very important to understand all the concepts
discussed in this chapter.
Try to relate the concepts to real life examples.
After reading the study notes, please read, understand, and answer the chapter test
questions in this knowledge area. The chapter questions improve your understanding of the
concepts discussed in the study notes.

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What is a Project?
*Project is a temporary endeavor undertaken to create a unique product, service, or result.
Features of project:
Temporary: Project has a definite beginning and a definite ending. The duration may vary from one day to
even a few years but ultimately all projects must either meet their objectives or be terminated. Please
note that even though the projects are temporary, the products or services created by them may far outlast
the projects themselves.
Unique product, service or result: All projects create something unique which has never been created
before. A product or service may be unique to whatever category it belongs (e.g., a project to create a
building has a unique design, location, resources, etc.).
Please visualize those situations at your work place and check whether what you are working on is in fact a
project or some other engagement, taking into account the following guidelines that help you understand some
of the characteristics of a project:
Does it have features of operations that are repetitive, and required to sustain business?
Does it relate to merely fixing something which is broken or making minor modifications or carrying on
maintenance activities (e.g., making changes in a document or website, resolving minor issues, etc.)?
These activities will not produce a unique product and are hence not projects.
Does the work require you to follow project management practices (e.g., does it require you to use expert
knowledge discussed in several PMBOK Guide Knowledge Areas such as Integration Management, Time
Management, Scope Management, Cost Management, etc.?)? Does it require a project plan to be created
and Project Manager assigned? If answers to these questions are No, then you are not dealing with
projects.
Important: Please read PMBOK Guide Fifth Edition (pages 3 and 4) which cites examples of projects and how
they can be identified.
*This definition is taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition, Project
Management Institute, Inc., 2013

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Projects and Operations

(How they differ)
Projects

Operations

Duration

Temporary - has definite

beginning and definite end
(although duration may vary)

Ongoing activity

Objective

Deliver service/product and

close the project

Sustain business

Create unique product or

service

Sustain business

End Result

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Programs, PMO, and Portfolios

Program:
*A group of related projects, subprograms, and program activities managed in a
coordinated way to obtain benefits not available from managing them individually.
Program management (as opposed to project management) is important because:
It provides a holistic view of several related projects which, if executed together, will
achieve better results than when executed individually.
It satisfies a distinct strategic objective, which requires management of several projects
simultaneously.
e.g.: A space launch is usually a program. It includes several individual projects related
to manufacturing, testing, creating the launch pad, R&D, etc. It may also include
operational activities like co-ordination with research institutes, compliance with
procedures, remembering lessons learned from other launch programs, etc. For the
space launch to be successful, all the underlying projects and associated operational
activities should be well coordinated and executed as part of a single program.

*This definition is taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition, Project
Management Institute, Inc., 2013

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Programs, PMO, and Portfolios (continued)

Project Management Office (PMO):
*An organizational structure that standardizes the project-related governance processes
and facilitates the sharing of resources, methodologies, tools, and techniques.
An entity that selects, deploys, and manages project resources
Portfolio:
*Projects, programs, sub portfolios, and operations managed as a group to achieve
strategic objectives.
Portfolio Management is important because:
It satisfies strategic business objectives.

It identifies, prioritizes, authorizes, controls, and manages projects, programs, and other
related work.
e.g.: A space launch portfolio will include several individual space launch programs. The
Portfolio Manager will be instrumental in determining which space launch programs should be
selected based on risks, returns, human resources, strategic objectives, and other
considerations. Also, all the programs and projects will be managed as part of the portfolio and
follow the standards & guidelines laid down as part of the portfolio.
Important: Please read PMBOK Guide Fifth Edition (pages 7 to 12) which discusses
these concepts in greater detail.
*These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition,
Project Management Institute, Inc., 2013

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Project Stakeholders
*An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a
decision, activity, or outcome of the project. Some examples are:
Project Managers:
Responsible for managing the project
Not required to be a technical expert
Customers:
*Person(s) or organization(s) that will pay for the projects product, service, or result (e.g., for a new
computer processor manufacturing project, the computer manufacturers are the customers).
Users:
Those who directly use the projects product (e.g., when a new drug is launched, patients are the users)
Functional Managers:
Responsible for managing the work related to the functional areas of the business
Sponsor:
Provides resources and support for the project, is accountable for the project success, and serves as an
escalation point for important issues.
Project Team:
Group of persons that carries out the project work

Program Managers:
Responsible for managing related projects

Portfolio Managers/ Portfolio Review Board:

Responsible for governing a number of projects or programs that may or may not be interdependent.
*These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition,
Project Management Institute, Inc., 2013

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Characteristics of Project Stakeholders

Stakeholders interests may positively or negatively impact the project.
Stakeholders may exert influence over the project and its outcome.
Very important for the Project Manager to identify all the stakeholders and their expectations
(sometimes their expectations may be implicit and not explicitly stated).
Stakeholders may have conflicting interests and objectives; so managing stakeholders may
involve balancing those interests.
Project Manager must aim to find resolutions to issues among various stakeholders.
Involving stakeholders in the project phases improves the probability of successfully
completing the project and thus satisfying customer requirements. This may also result in buyin or shared ownership of the project by the stakeholders.
In general, differences among stakeholders must be so resolved in favor of the customer.

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Organizational StructuresTheir Influence

on Projects

Reference: Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide)
Fifth Edition, Project Management Institute, Inc., 2013 Table 2-1, Page 22. Also, please refer PMBOK Guide - Fifth
Edition - Figures 2-1 through 2-6, Pages 22 to 26.

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Comparison of Functional vs. Projectized

Organization Structures
Functional

Projectized

Project Manager's authority

Virtually none

High to almost total

Ability to get resources for

project

Very difficult, because resources work

in specific functional areas

Easier to get resources

Reporting hierarchy

Resources report to Functional

Manager

Resources report to Project Manager

Dedication to the project

Low

High

Performance Evaluation

Done by Functional Manager

Done by Project Manager

Home for the resource after

project completed

Available, resources go back to

functional departments

No home after project is completed

Specialized skills

Well developed, because resources

place more emphasis on functional
skill-sets compared to projects

Not as well developed, team members

need to pay more emphasis to
projects and not to develop functional
skill-sets

Efficiency of resource
allocation

Efficient allocation of resources

Less efficient- duplication of job

functions

Career paths

Well defined - along functional

specialization

Depends on type of project, no well

defined career path

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10

Some Important Terms

*Project Management Office (PMO): It is an organizational structure that standardizes the
project-related governance processes and facilitates the sharing of resources, methodologies,
tools, and techniques.
*Program: A group of related projects, subprograms, and program activities managed in a
coordinated way to obtain benefits not available from managing them individually.
*Portfolio Management: The centralized management of one or more portfolios to achieve
strategic objectives.
*Subproject: A smaller portion of the overall project created when a project is subdivided into
more manageable components or pieces.

*These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition,
Project Management Institute, Inc., 2013

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11

Product Life Cycle, Project Life Cycle,

Project Management Life Cycle
*Product Life Cycle: The series of phases that represent the evolution of a product, from
concept through delivery, growth, maturity, and to retirement.

The product lifecycle is used to launch a new product. A single product life cycle may have
been generated as an outcome of several projects (multiple project life cycles). For example, a
project undertaken to bring out a new desktop computer in to the market constitutes only one
phase in the product life cycle of the desktop computer.
*Project Life Cycle: The series of phases that a project passes through from its initiation to its
closure.
Understanding the project life cycle constitutes the basic framework needed for managing the
project.
Project Management Life Cycle: It describes the processes required to be followed to
manage the project and are grouped under various process groups (i.e., Initiating, Planning,
Executing, Monitoring & Controlling, and Closing) explained in PMBOK Guide - Fifth Edition.

*These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition,
Project Management Institute, Inc., 2013

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12

Project Life Cycle - Features

Defines the beginning and end of the project
Includes the transitional activities at the beginning and the end of the project (thus provides
linkages with ongoing operations of the performing organization)
Defines work and resources involved in each phase
Project life cycle may be just one phase of the product life cycle
Subprojects within projects have their own distinct life cycles

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13

Project Life Cycle - Characteristics

Factors that increase with project progress and then decrease sharply when project
nears completion:
Cost of project
Staffing levels

Start of project

Project Duration
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End of project
14

Project Life Cycle Characteristics

(continued)
Factors that increase with project progress:
Probability of successfully completing the project
Cost of changes made
Cost of correcting errors

Start of project

Project Duration

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End of project

15

Project Life Cycle Characteristics

(continued)
Factors that decrease with project progress:
Uncertainty/risks about the project
Ability of stakeholders to influence final characteristics of projects product
Ability of stakeholders to influence final cost of projects product

Start of project

Project Duration

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End of project

16

Process Groups
The five process groups or project management process groups are:
Initiating
Planning
Executing
Monitoring and Controlling
Closing
Process groups are linked by the results they produce, i.e., output of one process group
becomes input to the succeeding process group.
Process groups may overlap and interact within phases.
If a project is broken down into several phases (e.g., design, implementation, etc.), then the
process groups will occur in each of these phases.
Note: Please refer PMBOK Guide - Fifth Edition (figure 3-3, Page 53). Please spend some
time in understanding the processes and their interactions. These processes are explained in
detail in subsequent chapters.

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17

Key General Management Skills

Leadership
Decision Making

Team Building
Motivating
Influencing
Communicating

Negotiating
Problem Solving
Political and Cultural Awareness
Trust building

Coaching
Conflict Management

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) Fifth Edition, Project Management Institute, Inc., 2013, Page 18.

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